CORPORATE RESPONSIBILITY COMMITMENT 

Through its worldwide oil and gas exploration and production activities, Lundin Petroleum is confronted with extremely diverse working environments. The Company operates in some of the most affluent, developed and regulated areas of the world as well as in remote areas which face serious socio-economic challenges. Lundin Petroleum seeks to apply the same high standards of ethical conduct in all its areas of operations.

Lundin Petroleum’s Corporate Responsibility commitment consists in putting in place the necessary measures to ensure that, wherever it operates, its activities have a beneficial socio-economic effect in the area and a limited impact on the environment.

In order that there be no doubt as to the nature and extent of its commitment, Lundin Petroleum’s Management and Board of Directors have developed a set of corporate guidelines on responsible business practice, in the form of a Code of Conduct and a Code of Governance. A Corporate Responsibility Department has been created in order to ensure the guidelines are followed.

The Code of Conduct sets out the principles by which Lundin Petroleum is guided and describes the responsibilities it has towards its shareholders, employees, host countries, local communities and society at large. It is binding on everyone in the Company and performance under the Code is presented to the Board on an annual basis.

The Code of Governance details the structure and functioning of Lundin Petroleum’s Board of Directors, in accordance with the Company’s principles and Swedish legislation.

While the Codes provide the basic framework for Lundin Petroleum’s Corporate Responsibility approach, dedicated policies on Health and Safety, Environment (HSE) and Community Relations underline those areas which the Company considers of critical importance to its operations.
The principles behind the HSE policies, which are to provide a healthy and safe working environment for its employees and to minimise potential impacts on the environment, are elaborated in Lundin Petroleum’s Green Book. The Green Book establishes the framework for the management of HSE issues both from the corporate and the operational perspectives. In turn, corporate HSE goals set corporate requirements on operational entities, which include identifying relevant HSE issues and ways of addressing them through environmental studies, establishing plans and procedures, training staff and attributing HSE responsibilities, maintaining emergency response and contingency plans, monitoring and reporting performance.

The Community Relations policy, which sets out the Company’s commitment to have a beneficial impact on the community, consists in engaging in a dialogue with the Company’s stakeholders, whether local communities or relevant interest groups, such as local governments and civil society. Stakeholder engagement is required to understand the concerns regarding the Company’s operations as well as the expectations on the Company.

A number of outcomes can result from this consultation process: the modification of an operational plan, the establishment of a community development program, and/or the participation in community initiatives. In all cases, it is the Company’s intention to maintain an open dialogue to ensure mutual understanding and thereby preserve its license to operate.
To be fully effective, however, Corporate Responsibility must go beyond the formulation of policies and procedures. It must be an integral part of the corporate culture. There must be a common understanding throughout the Company that the manner in which the company does business has a direct impact on performance and therefore on market perception.

At Lundin Petroleum, the call for corporate responsibility came from senior management, but it is a message that has found echo in all the echelons of the organisation.

C. Ashley Heppenstall

President and Chief Executive Officer